This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
NZDCAD missed the 90c yesterday. The pair has been trading along the median regression trendline of the 0.8016-0.8560 channel. Therefore, there have been limited attempts to break the outside channels. However, the higher lows recorded suggest a bullish bias.
Should there be a break in the median regression trendline, we could expect an attempt towards the upper channel. This could lead to fresh highs at 0.9090. This is the 100% Fibonacci expansion of the 0.8016-0.8560 leg.
The RSI supports this outlook as it indicates a bullish hidden divergence.
The shorter-term chart above indicates a slight decline as it failed to break the median regression. This suggests that the pair could revist the lower regression of the 0.8348-0.8780 channel.
Initial support could be found near the 38.2% Fibonacci retracement of the 0.8745-0.8980 leg. We anticipate the said level to hold firm due to its confluence with the lower regression trendline.
Should we see a false break, a test of the long-term medi...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.